[Federal Register Volume 61, Number 51 (Thursday, March 14, 1996)]
[Proposed Rules]
[Pages 10526-10528]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6086]



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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

49 CFR Chapter X

[STB Ex Parte No. 538]


Disclosure and Notice of Change of Rates and Other Service Terms 
for Pipeline Common Carriage

AGENCY: Surface Transportation Board, DOT.

ACTION: Advance notice of proposed rulemaking.

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SUMMARY: The ICC Termination Act of 1995 (ICCTA) eliminated the tariff 
and tariff filing requirements formerly applicable to pipeline 
carriers, but imposed in lieu thereof certain obligations to disclose 
common carriage rates and service terms as well as a requirement for 
advance notice of an increase in such rates or change in service terms. 
ICCTA requires the Board to promulgate regulations to administer these 
new obligations by June 29, 1996. The Board seeks public comment on 
appropriate regulations for that purpose, and encourages the affected 
interests groups to discuss and seek mutually agreeable regulations to 
propose.

DATES: Comments are due on April 15, 1996.

ADDRESSES: Send comments (an original and 10 copies) referring to STB 
Ex Parte No. 538 to: Surface Transportation Board, Office of the 
Secretary, Case Control Branch, 1201 Constitution Avenue, N.W., 
Washington, DC 20423.

FOR FURTHER INFORMATION CONTACT: Beryl Gordon, (202) 927-5610. [TDD for 
the hearing impaired: (202) 927-5721.]

SUPPLEMENTARY INFORMATION: The ICC Termination Act of 1995, Pub. L. No. 
104-88, 109 Stat. 803 (ICCTA), enacted on December 29, 1995, abolished 
the Interstate Commerce Commission (ICC) and transferred the 
responsibility for the economic regulation of pipeline transportation 
(of commodities other than water, gas, or oil) to a new Surface 
Transportation Board (the Board). See ICCTA Section 101 (abolition of 
the ICC). See also new 49 U.S.C. 701(a) (establishment of the Board), 
as enacted by ICCTA Section 201(a). The transfer took effect on January 
1, 1996. See ICCTA Section 2 (effective date).1

    \1\ ICCTA also made several changes to the pipeline regulatory 
authority that had been exercised by the ICC. In this notice, when 
referring to the provisions of the United States Code affected by 
ICCTA we use the word former to refer to the law in effect prior to 
January 1, 1996, and the word new to refer to the law in effect on 
and after January 1, 1996.
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    The substantive provisions of the new law differ in several 
important respects from the former law. As pertinent here, the former 
law required that pipeline carriers (of commodities other than water, 
gas, or oil) file with the ICC tariffs containing the specific rates 
and charges (or the basis for calculating them) for their common 
carriage transportation services. Pipeline carriers had to adhere to 
the rates and terms contained in their tariffs. See former 49 U.S.C. 
10761 and 10762. See also 49 CFR Part 1312 (1995).
    The ICCTA eliminated the pipeline tariff requirements, effective 
January 1, 1996. Accordingly, no new pipeline

[[Page 10527]]
carrier tariffs are to be filed with the Board, and the pipeline 
carrier tariffs that were previously filed with the ICC are no longer 
effective tariffs as of January 1, 1996. The ICC regulations at 49 CFR 
Part 1312 are likewise not effective with respect to transportation 
provided by a pipeline carrier on and after that date.
    Nevertheless, new 49 U.S.C. 15701 requires both disclosure of 
pipeline common carriage rates and service terms and advance notice of 
certain changes therein. (These requirements, it must be noted, apply 
only to transportation by pipeline of commodities other than water, 
gas, or oil). In particular, new 49 U.S.C. 15701(b) requires disclosure 
of pipeline common carriage rates and service terms, new 49 U.S.C. 
15701(c) requires that pipeline carriers, when providing common 
carriage, not increase their rates or change their service terms 
without advance notice, and new 49 U.S.C. 15701(d) requires pipeline 
carriers to adhere to the rates and service terms published or 
otherwise made available under new 49 U.S.C. 15701(b) and/or (c).2

    \2\  A central feature of both the former and new law is the 
requirement that a pipeline carrier adhere to its established rates. 
Therefore, as a transition matter, a question that arises is whether 
a pipeline carrier must continue to adhere to its established rates 
and service terms--those that were in effect (in tariffs on file 
with the ICC) on December 31, 1995--unless and until changed in a 
manner consistent with the requirements of new section 15701. 
Otherwise, it could be argued that there could be a break in the 
continuity of rates that Congress did not intend.
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    New 49 U.S.C. 15701(e) directs the Board to establish rules to 
implement the requirements of new 49 U.S.C. 15701. In accordance with 
this directive, we intend to promulgate new regulations to implement 
the requirements of new 49 U.S.C. 15701(b) and (c). We do not believe 
that implementing rules are required for new 49 U.S.C. 15701(a), which 
simply reenacts the longstanding common carrier obligation that the 
carrier provide transportation or service on reasonable request. We 
believe that this obligation, which has been well developed through 
case law, is best addressed on a case-by-case basis.
    Similarly, our preliminary view is that implementing rules are not 
required for new 49 U.S.C. 15701(d), which requires a pipeline carrier 
to provide transportation or service in accordance with the rates and 
service terms, and any changes thereto, as published or otherwise made 
available under new 49 U.S.C. 15701(b) or (c). This requirement appears 
to be clear on its face.
    The regulations implementing new section 15701 would appear to 
apply to any transportation or service provided by a pipeline carrier 
subject to our jurisdiction under new 49 U.S.C. 15301, with one 
exception. They would not apply, it would seem, to transportation or 
service provided by a pipeline carrier covered by an exemption issued 
under new 49 U.S.C. 15302, to the extent that such exemption applies to 
rate notice and disclosure requirements. We would also again point out 
that, under new 49 U.S.C. 15301, the Board has jurisdiction over 
transportation by pipeline, or by pipeline and either railroad or 
water, only as respects the transportation of commodities other than 
water, gas, or oil.
    The new regulations would first need to address the requirement of 
new 49 U.S.C. 15701(b) that a pipeline carrier promptly provide to any 
person, on request, its rates and other service terms. It would appear 
that this requirement applies both to the disclosure of an existing 
rate (and related service terms) and to the establishment of a new rate 
(and related service terms) where none exists.
    In the situation where the carrier has existing rates covered by 
the rate information request, the provisions of 49 U.S.C. 15701(b) and 
(e) require the carrier ``immediate[ly]'' to disclose its ``rates and 
service terms, including classifications, rules, and practices'' to any 
person requesting such information. We seek suggestions for a rule that 
would implement these provisions in a way that would provide the rate 
requestor with complete information about all relevant terms and 
conditions. We also seek input on whether we should attempt to define 
the word immediately, or instead should simply establish general 
guidelines to be applied on a case-by-case basis, setting up broad 
parameters governing disclosure.
    There may be instances in which a shipper or prospective shipper 
requests the carrier to establish a rate for a type of traffic for 
which no existing rate is in place. Again, the provisions of 49 U.S.C. 
15701(b) appear to require that the pipeline carrier provide a rate, as 
well as any related charges and service terms, promptly. We seek input 
on whether we ought to define the word promptly, or instead should 
simply adopt broadly applicable guidelines.
    The new regulations also need to address the requirement of new 49 
U.S.C. 15701(c) that a pipeline carrier may not increase a common 
carriage rate or change a common carriage service term without first 
giving 20 days' notice to any person who, within the previous 12 
months, (1) has requested that rate or term under new subsection (b), 
or (2) has made arrangements with the carrier for a shipment that would 
be subject to the increased rate or changed term. It seems to us that 
the advance notice requirement would apply to known users of the 
transportation or service to which the increase or change is applicable 
(i.e., a person who has made a shipment within the past year or has 
already made arrangements for a future shipment) and also to known 
prospective users of such transportation or service (i.e., a person who 
has requested that rate to be established). Our preliminary view is 
that it would not be necessary or appropriate to require a carrier to 
keep a record of and notify all persons who have requested rate 
information but are not users of the affected transportation service. 
We request comment on what guidance, if any, should be given for 
determining which members of the shipping public are covered by the 20-
day notice period.
    We note that the notice requirement does not apply to a rate 
decrease, which a carrier may apply without notice. Similarly, it would 
not seem that the notice requirement should apply to, and hence delay, 
a change in service terms that is clearly beneficial to shippers. Our 
initial view is that it is not necessary to establish rules addressing 
how to determine whether a service change is clearly beneficial to 
shippers. Commenters may wish to address this issue.
    Finally, the new regulations should provide for the required 
information to be supplied either in writing or in electronic form. It 
would appear that the form chosen would depend upon the technical 
capacities of the carrier to transmit, and of the requestor to receive, 
the information.

Request for Comments

    We invite all interested persons to comment and to offer 
suggestions for the new regulations. Commenters may wish to address, 
among other things, whether we should exercise our authority under new 
49 U.S.C. 15701(e) to modify the 20-day advance notice period provided 
by new 49 U.S.C. 15701(c).
    We encourage affected interest groups to discuss the new 
requirements with each other and to seek a mutually agreeable set of 
regulations that would meet the needs of all affected interests--both 
shipper and carrier, and both large and small.
    Comments (an original and 10 copies) must be in writing, and are 
due on April 15, 1996.
    We encourage any commenter that has the necessary technical 
wherewithal to submit its comments as computer

[[Page 10528]]
data on a 3.5-inch floppy diskette formatted for WordPerfect 5.1, or 
formatted so that it can be readily converted into WordPerfect 5.1. Any 
such diskette submission (one diskette will be sufficient) should be in 
addition to the written submission (an original and 10 copies).

Small Entities

    Because this is not a notice of proposed rulemaking within the 
meaning of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), we 
need not conduct at this point an examination of impacts on small 
entities. We will certainly welcome, of course, any comments respecting 
whether regulations that commenters may suggest would have significant 
economic effects on any substantial number of small entities.

Environment

    The issuance of this advance notice of proposed rulemaking will not 
significantly affect either the quality of the human environment or the 
conservation of energy resources. Furthermore, we would not expect that 
regulations suggested for implementing new 49 U.S.C. 15701 would 
significantly affect either the quality of the human environment or the 
conservation of energy resources. We certainly welcome, of course, any 
comments respecting whether suggested regulations would have any such 
effects.

    Authority: 49 U.S.C. 721(a) and 15701.

    Decided: March 6, 1996.

    By the Board, Chairman Morgan, Vice Chairman Simmons, and 
Commissioner Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 96-6086 Filed 3-13-96; 8:45 am]
BILLING CODE 4915-00-P